Ontario’s government is moving to accelerate major job-creating projects with a new regulation that will govern how Special Economic Zones (SEZs) are designated across the province, a step it says is critical to strengthening economic resilience amid global trade uncertainty.
The regulation, which comes into force Jan. 1, 2026, establishes criteria for designating Special Economic Zones, trusted proponents and priority projects under the Special Economic Zones Act, 2025. The framework is designed to shorten approval timelines for projects deemed strategically important to Ontario’s economic security, while maintaining environmental safeguards and the Crown’s duty to consult Indigenous communities .
The Ministry of Economic Development, Job Creation and Trade said the regulation follows extensive consultations with stakeholders and Indigenous communities and is a key element of the province’s broader plan to build a more competitive, self-reliant economy.
“Special Economic Zones will bolster Ontario’s economic advantage by cutting red tape, accelerating approvals and protecting the jobs and industries that keep our province resilient and competitive,” said Vic Fedeli, Minister for Economic Development, Job Creation and Trade. “At a time of economic uncertainty, this new regulation will serve as a critical tool to accelerate major nation-building projects and secure job creating investments that deliver lasting prosperity for our workers.”
The SEZ framework was first introduced under the Protect Ontario by Unleashing Our Economy Act, legislation brought forward in response to U.S. tariffs that have weighed on key sectors of the provincial economy. The government argues that by creating a more predictable and stable investment environment, projects located within designated zones will be able to launch and advance significantly faster than under traditional regulatory processes.
According to the province, the accelerated approach is intended to reduce overlapping approvals across ministries and levels of government, a longstanding concern for investors, particularly in capital-intensive sectors such as mining and advanced manufacturing. In some cases, permitting and authorization processes for mining projects can take up to 15 years before production begins.
The government has emphasized that faster approvals will not come at the expense of environmental protections or Indigenous consultation. As it works with partners to identify and designate the first Special Economic Zones, the province says it will continue engaging relevant stakeholders and Indigenous communities throughout the process.
“Informed by participation and consultation with Indigenous communities, the regulation for Special Economic Zones is providing clarity for communities and industry alike,” said Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation and Minister Responsible for Ring of Fire Economic and Community Partnerships. “As an important tool for communities to unlock First Nations-led economic prosperity, we look forward to continued partnership through the designations of future SEZs.”
Consultation has been a central feature of the regulation’s development. The province engaged more than 130 Indigenous communities to gather feedback on the proposed criteria and regulatory framework. Ministers and parliamentary assistants also travelled extensively across Ontario following the passage of the Protect Ontario by Unleashing Our Economy Act, meeting with local leaders to discuss community needs, enabling infrastructure and large-scale, nation-building projects.
In addition to direct engagement, the draft criteria regulation was posted to both the Environmental Registry of Ontario and the Ontario Regulatory Registry on Oct. 2, 2025, triggering a 45-day public comment period that closed on Nov. 16. The government says all feedback received during consultations and the public comment process was considered in finalizing the regulation.
The push for Special Economic Zones comes as Ontario faces ongoing pressure from U.S. trade measures affecting workers and businesses across manufacturing, resource development and other strategic industries. The government says the SEZ approach complements other actions it has taken to lower taxes, reduce regulatory burden and make targeted investments to support economic growth.
Officials have highlighted Ontario’s critical minerals advantage as a cornerstone of the strategy, pointing to opportunities in defence, electric vehicle and battery manufacturing, technology, aerospace and advanced manufacturing. By streamlining approvals for strategically important projects in these sectors, the province aims to mitigate trade disruptions and secure long-term economic prosperity.
The government has framed the regulation as part of its ambition to make Ontario the most competitive place in the G7 to invest, create jobs and do business. As the criteria come into effect in the new year, attention will turn to how quickly the first Special Economic Zones are designated and whether the accelerated framework delivers the promised balance between speed, certainty and accountability.
